US President Donald Trump confirmed that the head of his National Economic Council, Kevin Hassett, is one of two finalists to be the next Federal Reserve chair, the other being Fed governor Kevin Warsh.
Hassett is the favorite, but experts worry his economic policies are too far outside the mainstream, and that he would be excessively deferential to the White House, eroding the central bank’s independence. JPMorgan’s chief executive reportedly signaled last week that he supported Hassett’s rival for the position, a former Fed governor. Even longtime colleagues and collaborators are skeptical of Hassett, arguing that his views have changed radically. “That transformation worried them when they thought about Hassett becoming Fed chair,” the author of a recent Barron’s profile of the economist wrote.